For a Business Combination in Which the Acquirer Achieves Control

question 5

Multiple Choice

For a business combination in which the acquirer achieves control without acquiring all the equity of the acquiree, the noncontrolling equity interest is measured:

• A)either at fair value or at noncontrolling interests' proportionate share of the acquiree's net identifiable assets.
• B)either at historic cost or at noncontrolling interests' proportionate share of the acquiree's net identifiable assets.
• C)only at fair value.
• D)either at historic cost or at controlling interests' proportionate share of the acquiree's net identifiable assets.

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Definitions:

Normal Time

The average time that should be taken to complete a task or process under normal working conditions.

Standard Time

The established time allowed for the completion of a specific job, based on measurements and assessments of work processes.

Variable Allowance

In budgeting and cost accounting, it refers to an amount set aside that can change based on the performance or needs of a business.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the spread of a distribution around the mean.